3 EV Charging Stocks to Buy Now: May 2024
It’s time to jump back into EV charging stocks to buy. At the moment, electric vehicle sales are outpacing the growth of EV charging stations. In 2023, U.S. consumers bought about 1.2 million EVs, which accounted for about seven percent of total new car sales, says The Washington Post.
Unfortunately, there’s just not enough spots to plug in and charge. The publication added:
“Between 2016 and 2023, EV registrations in the United States grew almost three times faster than the United States’ public charging infrastructure. In 2016, there were seven electric cars for each public charging point; today, there’s more than 20 electric cars per charger.”
In addition, according to McKinsey, the U.S. will need about 28 million ports by 2030. They added that private ports could increase from about 2.5 million to 27 million.
With more EVs likely to roll out, far more public charging stations are needed. That being said, investors may want to start accumulating EV charging stocks while they’re cheap. With more EV sales expected, and demand for charging set to increase, most of the top EV charging stocks to buy should benefit.
EVgo (EVGO)
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Since bottoming out at $1.65, EVgo (NASDAQ:EVGO) now trades at over $2 and could easily accelerate higher. For one, earnings are improving.
In its first quarter, the company posted an EBITDA loss of $7.2 million on sales of $55.2 million. Meanwhile, analysts were looking for a loss of $13.3 million on sales of $45.2 million. The company also ended the quarter with 3,200 charging stalls — up about 38% year over year.
CEO Badar Khan spoke in a news release:
“EVgo’s business continues to grow and achieve record results, demonstrating the strength of our business model of owning and operating a fast-charging network as more Americans drive electric vehicles. The tailwind of long-term EV adoption gives us confidence that we will achieve adjusted EBITDA breakeven in 2025.”
Additionally, according to analysts at RBC Capital, EVGO is well positioned to benefit as the auto industry moves towards electrification.
Eventually, I’d like to see EVGO retest $3.20 initially.
Blink Charging (BLNK)
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Since late April, Blink Charging (NASDAQ:BLNK) ran from about $2.30 to a recent high of $3.40. From here, if it can break through overhead resistance at $3.60, it could potentially test $4.40.
Helping, the company just became one of the official EV charging providers for New York. That will allow Blink Charging to now electrify state and municipal fleets, in addition to providing electrification for employees, residents and visitors.
Earnings haven’t been too shabby either. In its recent quarter, BLNK posted an earnings per share loss of 13 cents, which beat by seven cents. Revenue of $37.57 million, up 73.1% year over year, beat by $2.96 million. It also reiterated its target of achieving positive adjusted EBITDA by December of this year, too.
In addition, analysts at D.A. Davidson recently reiterated a hold on the BLNK stock with a $5 price target. While that won’t happen overnight, give it time. With EV demand gaining momentum, and a growing need for EV charging, BLNK will benefit.
ChargePoint (CHPT)
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ChargePoint (NYSE:CHPT) is showing big signs of life again, too.
After finding support at $1.20, CHPT is now back to $1.79. From here, if it can break above resistance at $1.90, I’d like to see it retest $2.30 initially.
Most recently, CHPT and Airbnb (NASDAQ:ABNB) partnered to install EV chargers at listings and expand access to chargers across the country.
Even more impressive, as noted in a CHPT release:
“According to Airbnb data, listings that offer an EV charger are booked for more nights and generate more income on average, when compared to listings without an EV charger. Airbnb searches for listings with EV chargers grew more than 80 percent from 2022 to 2023. Similarly, ChargePoint data shows that its North American drivers spent more than 79 million hours charging in residential settings in 2023.”
The stock was also defended by Needham, which has a “buy” rating and a price target of $3 on CHPT. The firm noted that it’s enthusiastic about second-half gross margin accretion and OPEX (operating expense) leverage, and is now less concerned about the company’s future.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
